Thoughts On Voodoo
by John Krugman
With Tim Pawlenty — who was supposed to be a sensible Republican — going all-in for high voodoo, I thought it’s worth pointing out that at the moment there’s a pretty good case that there is a kind of Laffer curve in which more is less and less is more. Namely, there’s a good case that fiscal stimulus right now would actually improve the long-run fiscal situation, while fiscal austerity makes it worse.
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